UDAAP Flashcards
An Unfair Act does what
Causes substantial injury to consumer
Cannot be resonantly be avoided by a consumer
The injury is not outweighed by the benefits
A deceptive act is where
A representation , omission or practice misleads the consumer
An abusive act
Interferes with the ability of a consumer to understand a term.
Takes advantage of lack of understanding of consumer
Example of deceptive acts may include
False oral or written representations
Misleading claims about costs or services or products
Bait and switch techniques
Failure to provide promises services or goods
The deceptive act has to be considered
Material - the act is likely to affect a consumers choice
The occ has determined that the following practices may violate the Federal Trade Commission ACT
Failure to provide sufficient information to allow consumers to understand terms of a product
Failure to adequately disclose fees or prerequisites to obtain a product
Failure to disclose limitations affecting the product or service being offered
Managing A UDAAP oversight process includes
Verifying information to consumers is complete and accurate
Avoiding use of terms guaranteed preapproved, lifetime rates
Providing clear upfront disclosures that permits a change in product or service
Offered
Avoiding highlighting a benefit of a product that could be negated by something else
Reviewing telemarketing scripts for accuracy
Letting customers know if they must cancel when free trail period ends
Following due diligence when selecting third party vendor
Ensuring promotional material does not conflict with consumer disclosures and privacy notices
Reviewing complaints to see if customer was mislead
Maintaining procedures to ensure payments are properly posted
Monitoring collection calls made by third parties
Violation of UDAAP can also violate what other laws
TIL
ECOA
Fair housing act
Fair Debt Collection Practices Act
